In 1998 my wife became the 100% shareholder of a family S-Corporation. The business is very small and offers services in a retail shop. It is run pretty much like a sole proprietorship but all accounting is kept separate from personal. We have never had any years end with losses. My question centers around the basis calculation. If she is the only shareholder with very simple business practices (daily income and basic purchases, no loans or large purchases/transactions) and no losses reported, are the retained earnings essentially the same as her basis calculations?